ISLAMABAD: The federal government has revised upwardly the rates of profit on National Saving Schemes (NSS) instruments with effect from 1st October 2013. Updated profit rates effective from May 2018 are as under;

sir i have one query that i have regular income certificate last wk i go to get my profit the bank pay me about 2333 ruees per month as they ask me to fill check at rate of 2592 when i ask the matter they told that there is tax deduction @ 10% pls clarifie the matter

i have one suggestion about over seas pakistani. If our govt acknowledge the importance of national financial support from expatriate pakistani,they should be given the status equal to senior citizens of pakistan. they should be allowed to join bahbood saving certificate to compete this inflation times.

this is not a good scheme this is only for govt fund raising the customers do not get any proper return if you have two lac rupees you can hire a shop in shahalmi or you can purchase three cows and you can have a lot of profit

Wonderful, Lahori wonderful views. Every one of us should either be a shopkeeper or owner of cows in the home. Really amazing idea. I am myself originally from Sialkot though for the last 35 years I have now now been able to visit Punjab nevertheless your views gave me an instant answer removing a puzzle why there were today voices to divide Punjab creating new small provinces. You very best suit to our present day rulers. When we can have Abdul Ghafoor Choudhary, Farooq Naik as minister you could be the best name for Finance Minister.

Sir, Could any body get this message to the chiefs of OPF. I think eevery thing they say about Overseas Pakistanis is a lip service. Practically OPF is a useless body. They would just pass on your complaint to other party and their response (if they bother to answer) to you. I think OPF is a joke. HUSSAin

What are the basis for these high return rates on NSS. Are these Shariah complaint, to me it looks like these are interest rates, If NSO can explain to me the working and mechanism of how these funds are invested and put to use, I will be happy to invest. Also these prize bonds schemes, I dont believe these are islamic, where one puts the money, and from a luck of draw one gets huge return purely based off luck. Pakistan is islamic republic country the Shariah scholars should look into this matters. Rafay/Khan

Rafay, is life of your’s and mine shariah compliant? Is the salary or income from your business in Pakistan or if you are an OP abroad, shariah compliant? Leave this do not show you are too religious and others are not. National Savings or the present day modern banking is “partnership – one sleeping partner like you and me and the other expert working partner the Bank – both have profit and loss. The Bank get loss you get loss, the bank gets bankrupt you get loss”. It is as simple. Those give you lectures on TV about Shariah, themselves have largely invested in National Savings. There is no and at least next 20/30 years can not even be a single truly Islamic Sharia compliant bank etc. Those who are offering they are fooling the people like you by offering wine labeling it as pure grape juice.

I have read few comments of you and unfortunately I have been forced to say that you are a true copy of our national image i.e. arrogant and self-made-champion. Mate – learn few manners and for God’s sake learn some manners and do not ridicule anyone, just to prove your unsubstantiated view points.

So called Sharia compliant schemes are also not Sharia compliant but merely new tools of exploitation in reality. These are much debated topics without any outcome. Being an ordinary person, I must not write more on this topic. Religious and financial experts are invited to give their view point on this very sensitive issue.

All investments having been remitted through legal channels in banks or national savings or in any industry are exempt from any income tax for the 5 years. However there is a 10% withholding tax which in effect is income tax on the Profits gained and not on principal amount. Withholding tax means tax taken at source temporarily for your adjustment at later stage. You can claim all the with holding taxes taken from you eg from share dividends, from your electricity bill, from national savings profits etc but for this you have to file a formal income tax return declaring your income etc. This is such a lengthy procedure that you will spent more on what you wished to get back the tax with=held from you. This is a very tactful move of the government and a very big income.

Hi My father had purchased some defence saving certificates for me the maturity period was ten years i did not go back until 14 years later was given the ten years money but the extra four years profit was not explained to me and was not what i expected please can anyone explain to me what i would of been entitled to. As i feel i have been short changed considerably. Regards

Naureen If I am not mistaken, in case of death of the account or certificates holder a clearance letter from the court is required. First the court directs the applicant to advertise in the news papers and after a certain period, the court issues the certificate. Hopefully someone else with adequate knowledge about these matters will also advise.

To encash the certificates or get the balance from the Bank account of a deceased or his locker the heir first needs to approach to the civil court for obtaining an Inheritence Certificate. All relatives entitled would file applications – they may all agree amongst themsleves to nominate one from all of them. This application will be submitted through an Advocate. It is not binding to hire an advocate as he would charge you dependent upon how much money is involved. Mostly these lawyers cheat. One can himself do all the job which of course may take a little pain going one door to another but it can be done. When I was myself an OP, for customer clearance of my unaccompanied baggage I always utilised the “Self Clearance Scheme” avoding agents. The fact is our governments have created many good schemes but people themselves have become lazy and unnecessary want agents because today people have too much money.

After getting the Inheritence Certificate one can very easily get the money from the Bank or from the National Sainvgs.

It is reason I always advise people to invest in the Bank or in the National Savings or may be operating a Locker, only and only opt Joint Account on Either or Survisor Basis. In 1990 I took up this matter in the larger interest of the community at a very high level when the dealing Judge termed my plea as humanitarian. My plea was that no single signature account should be allowed in the country. All the Presidents of our 5 nationalised banks tooth and nail resisted my move (reason of which I knew well) but after my strong arguments they had to agree though they left still some “lemon” in it. The court issued orders that no single signature account will be opened and if one insists then he would have to submit a small declaration which I had drafted. My this small drafted declaration was then adopted in inserted in the new account opening forms by all Banks in Pakistan and legally still is being applied. Never open single handed account.

In case of death of an investor, legally that account siezes from the date of dealth. The Bank or the National Savings would treat the account closed from the date of dealth, this is the legal position.

Read your comments above, seems you are v.knowledgable about all bank and bonds issues etc. I am in Dubai and would like to invest in some saving scheme in Pakistan, what would you recommend? I would want something which is easier to get in and out from, as i dont go back so very often and for so long. Would appreciate your response.

Javed bhai i have purchased some BSC’s on my mother’s name,in which i have Nominated myself,now my mother has passed & my elder brother has stoped payment of those certificates by sending legal notice to National Saving & has called me in Court for his Inheritive share whereas in mother’s life he snatched everething from us,these were all my efforts which i invested on mother’s name in National Savings,i want u to plz tell me that what is the legel position of those Nominations made by me on my name,either the court will consider those Nominations or not. Thankyou

no,as per shariah law all legal heir are entiltle to equal shares of deceased assest.Nominee is only person entitle to recieve payment etc.but deceased assets will be divided equal among legal heir.you have invested investment in the name of mother is no groud to recieve all amount of certificate unless you prove it in signed written agreement of deceased.

WE THE OVERSEAS PAKISTANIS REQUEST THE GOVT. OF PAKISTAN TO AUTOMATICALLY APPLY THE NEW INT.RATE ON ALREADY PURCHASED CERTIFICATES WITH OUT MATURITY DATE.IT WILL HELP REDUCING EXTRA WORK LOAD ON NSC STAFF,,,,,,,,,,,REGARDS

IN CASE OF DSC AFTER MATURITY (10 YEARS) FULL AMOUNT (PRINCIPAL AMOUNT + PROFIT)IS TREATED AS IF REINVESTED AT THE RATE ENFORCED ON MATURITY DATE SO YOU GET ACCUMULATED AMOUNT–IE– PROFIT ON THE TOTAL REINVESTED MATURITY AMOUNT FOR EXTRA YEARS TOGETHER WITH ITS INVESTED PRINCIPAL AMOUNTS ON ENCASHMENT PLEASE TAKE UP THE ISSUE WITH HIGHER UPS. IT IS A SIMPLE CASE OF CHEATING,WE DO NOT KNOW HOW MANY PERSONS ARE VICTIM DUE TO IGNORANCE

In case of National Savings if the investment remains undrawn after its maturity it can be treated as reinvested but not automatically. This is a misconception that after maturity it gets automatic re-invested. Just on maturity or at any time later or even 10 minutes before encashment, just submit an application to the Centre Incharge to treat the investment re-invested from the date of maturity, one will get profit for that period.

WE ARE AWAY FROM HOMELAND SO WE CANNOT CONFIRM THE NEWS THAT THE NEW GOVT HAS OR IS CONTEMPLATING SOME INCREASE IN THE PROFIT OF BAHBOOD CERTIFICATES IN THE NEAR FUTURE, THE FIGURES QUOTED ARE : BAHBOOD=15%, SPL.SAVING=13%, ETC.IT COULD NOT BE CONFIRMED ON WEBSITE. COULD SOME BODY HELP ME IN THIS RESPECT .THANKS

SORRY TO BOTHER. I GOT THE DETAILS OF THE LATEST PROFIT RATES.THANKS. DO THE SERVICE CHARGE FOR EN-CASHMENT OF BAHBOOD CERTIFICATES AT 1,000/,750/ ,500/,250/ FOR 100,000/ DOMINATION FOR PERIODS RANGING FROM 1 TO 4 YEARS STILL HOLD GOOD OR IT HAS ALSO BEEN BEEN CHANGED OR DECREASED.IN THE PAST WE HAD TO PART WITH A HUGE AMOUNT ON TWO OCCASIONS IN ORDER TO AVAIL HIGHER PROFIT RATES

Hi, I am from outside pakistan and i want to buy regular income certifcates or i will buy defence saving certificates. Kindly send me the complete rates and also please tell me how i can buy these certificates from outside pakistan.

WE ARE AWAY FROM HOMELAND SO WE CANNOT CONFIRM THE NEWS THAT THE NEW GOVT HAS OR IS CONTEMPLATING SOME INCREASE IN THE PROFIT OF BAHBOOD CERTIFICATES IN THE NEAR FUTURE, THE FIGURES QUOTED ARE : BAHBOOD=15%, SPL.SAVING=13%, ETC.IT COULD NOT BE CONFIRMED ON WEBSITE. COULD SOME BODY HELP ME IN THIS RESPECT

2.. i have completed the period of my certificates due to out of country i can not refund or reissued my some certificates. please confirm the whether i can continue the period upto one more years with profit or upto chashing years or months. please .. .THANKS

Mansoor sahib Unfortunately there are no schemes specifically designed for overseas Pakistanis. Our rulers are begging to get “aids” from IMF etc. but do not have the ability to motivate overseas Pakistanis to invest in Pakistan. To invest in National Saving Schemes, you have to ask someone in Pakistan to buy certificates on your behalf or wait until you go on leave.

Talib do not take it as guaranteed that in case you did not contribute your wisdom in any Forum, it would not be complete. “If national savings are open to Overseas Pakistanis there would a flux”. This is your ill knowledge and ill knowledge when advices other it is always dangerous. From where you get that the National Savings Schemes or others alike are not open for Overseas Pakistanis and there already is not huge invested in NS by OPs. If you do not have proper knowledge please do not open mouth it may misguide someone.

B Saba Thank you for sharing the info. We all need to share our knowledge and information with each other. It is vital for the well being of any community or a nation to pass on to others, the information that we have and learn from other people’s knowledge and experiences.

One thing I really don’t understand that the government is always asking overseas Pakistani’s to send more and more foreign exchange back home but the government has always neglected us. For example. We should be given a break on withholding tax on the interest received on all our savings account or national savings investments. It should be eliminated for overseas Pakistani’s. I hope all overseas Pakistani’s would agree to it.

Just down load the Form from the net, fill it up, attach a copy of your NIC and a Bank Draft of the Amount you wish to invest, write on it in which scheme you wish and send it to your area National Saving Centres. There are more than 15 centres in Karachi. If you do not know send your form under thecover of a letter to Regional Director, Nation Savings Directorate, National Savings House, Off. Shahrai-e-Faisal, Karachi tell him in which are you live and advise him to forward the same to your area office otherwise advise him to register in the National Savings House. Again I will repeat prefer “Joint B” Option including keeping the certificates in the safe custody of the National Savings.

this is true that rates on all defence saving schemes had been increased, there is no doubt that there are no flaws in them, there are, but the thing is, these are good ones for the general public, even though that government is trying to get money from public on better terms and its not a bad idea that both parties are being benefitted. Now a days in my opinion monthly schemes are the best.

It is a great news or opportunity for overseas Pakistanis. But I need some suggestions because I am very new in the field of saving. How can I open the account? And what are the initial requirements I have to be submitted. Please contact me on my e-mail ID. You all guys have a wonderful day.

I just wanted to ask that i have got National saving certificate but the thing is that it had the time limit till 2007. as i am here in DOHA and can’t go to pakistan to update it i JUST wanted to ask whether i’m getting any profit on it or not?after 2007?

It is very disappointing on the part of Pakistani Banks in UAE that their buying -selling rate of Pakistan currency is almost 1% but specially for National Saving Certificates issued by them to overseas Pakistanies, they just black mail them because they know that they have to get refund only from them and in this event they are charging nearly 2.5% these days. It not only discourage the investment by Pakistanies in the National Saving Scheme but also deprive them of their due profit.i would very strongly request the authorities to look into this matter as early as possible.

That is why elders have very wisely said before arranging a “match” for your son/daughter, before any major operation, before buying property etc one must have a second advice / consultation from someone. The point is in the first instance when a product you can easily buy yourself directly why should it be purchased through any agent. If you have purchased through a Bank the Bank is doing this service for some earning. So both at the time of purchase and your selling it will charge its service charges. Why cry now.

Normally, when we overseas Pakistanies purchase NSCs from any of the two Pakistani Banks here, one very common question is asked that if we go back to Pakistan, how can we get our money once these cerftificates become matured and from where . Recently, I had experience to ask the same question from an issueing bank officer. His answer made me worried that most of the people come back to get their certificates encashed after maturity because, in Pakistan it is as difficult as anything . Clearly, if these certificates are encashed outside Pakistan, the issueing bank will charge very excessive buying-selling rate which is nearly 2.5% and otherwise as the bank officer said, the holder will have to face all difficulties. I would therefore, ask the concerned authorities the procedure to get the NSCs encashed or to continue to hold and get them registered at the nearest office of National Savings or the office of our choice untill they are matured.

That is why elders have very wisely said before arranging a “match” for your son/daughter, before any major operation, before buying property etc one must have a second advice / consultation from someone. The point is in the first instance when a product you can easily buy yourself directly why should it be purchased through any agent. If you have purchased through a Bank the Bank is doing this service for some earning. So both at the time of purchase and your selling it will charge its service charges. Why cry now.

There is also an advantage to purchase the certifcates in abroad through the banks that you can purchase higher amount as well without the restriction of Zakat as well as 10% withholding tax. As the banks are cooperate buyer of national savigns.

So if you will do the cost/ benefit analysis there is no harm to pay 2.5% to bank.

i wanted to ask that my Defense saving certificate was started on 28/7/97 it finished it’s 10 years in 2007….ofcourse in july so i really want to kw after the completion of itz 10 years i’ll get any profit or not? if yes can somebody plz tell me how much?

Yes much better if you now send an application to the National Savings cencered that your certificates are treated as reinvested from the date of maturity. Send it by registered mail. You can also hand over this while encashment but to avoid arguments and sometime disappointment much better do it now.

On March,8 I asked a question about the procedure of encashmemnt of Special Saving Certificates in Pakistan having been purchased from outside Pakistan. I feel very sorry and unfortunate having no answer from any member of Pakistani society or the officials til today. I have experienced, if ask any question at the counter of any official or any financial institution, you don’t get any clear and firm answer. People always use ” may be” or “nearly” ( Taqriban). Perhsps people have lost faith in them absolutly which is not a good sign.

There would be no problem if you purchased your certificates while sitting abroad and you would encash those during your visit to Pakistan. It makes no difference provided however that when abroad you purchased those directly from the National Savings and not rhough the Bank

Yes you can, send your application form properly filled in alongwith a bank draft and copy of your ID Card. These certificates or account book will come to you. My advice opt for Joint B and retaining of certificates with the centre.

Yes prize bonds can be purchased but only you can ask your relatives in Pakistan who will purchase for you. It is better they buy and send you serial numbers of the bonds and you keep checking the prizes. Their sending these to you by mail is highly dangerous

You have a Savings Account with the National Savings. Just send your Pass Book to the Centre (under registered cover) to ask them “Update”. They will make all entries and you will get upto date information.

(Investment From Abroad) Q.09. I am presently out of the country and want to withdraw the profit of my investment made in NSS in Pakistan, can I do this? If yes, what are the steps? Ans: As per rules a purchaser can nominate an agent for collection of profit of the principal at his personal risk after issuing a power of attorney duly attested by the Pakistani missions working in that country subject to entire satisfaction of the Officer Incharge of National Savings Centre concerned. Q.10 What is the procedure to invest in National Savings Schemes from abroad? In which scheme(s) I can invest, and what documents are required? Ans: Investment from abroad can be made through Bank Draft/Cheque in any foreign currency in favour of any of our office(s), alongwith the application form duly filled in and the copies of Passport and National identity Card. The Bank Drafts got prepared in Pak rupee from abroad are cleared much earlier than those in foreign currency. It would be more proper if these are payable at the same city where the investment is intended to be made. The investment in the National Savings Schemes is maintained and expressed in Pak rupee only. Amount received in foreign currency is converted into Pak rupee on the prevailing official exchange rate through normal Banking channels for investment in National Savings Schemes. Moreover, the principal and profit accrued on a certificate issued against foreign exchange received through remittance shall be payable abroad to the purchaser in foreign exchange if so desired by the investor. For the purpose, the payable amount shall be converted into the desired currency at the official exchange rate prevailing at the time of conversion/payment.http://www.savings.gov.pk/FAQs_abroad.HTM

Since proper information is not available hence exact answer can not be given. You have mentioned the word “investment” hence I take it you have a sort of account eg special savings account etc. Mostly the officer incharges would advise you to send an authority letter duly attested by Pakistan Embassy in favour of your relatives who can receive cash (here some where one has commented that a Power of Attorney is needed, which is wrong, merely an authority letter on white paper is enough). Your relative will receive the cash and send it.

However if my assumption that you have Account, then my advice is make a withdrawal slip for the amount you wish to with draw, write it in your own favour, on the back clearly write “Pre-Receipted Receipt – Payment to be received through cheque” and with you Pass Book send it to the National Savings concerned asking them to send you a Departmental Cheque for that amount. They would send it to you in Germany which then you send it to your Bank in Pakistan who will credit it.

It is not clear you or your son is in Pakistan or abroad. The second important thing missing is what is present age of your son and at what age likely he would need this money. In the absence of this information my advice is if you are an “active” man, then invest in special savings account. If you are the one like majority that after once depositing you can not look after then go for defence savings.

I live in Canada. In April 2006 I went to Pakistan and puchased Special Savings Certifcates. I never encashed their six monthly profit. Now, that my SSC’s have completed their three years term in April 2009,I am not able to encash or reinvest while I am living abroad.

I am planning to go to Pakistan in 2010. My question is if any body can tell me correctly that is it possible to re-invest those certificates at BACK DATE ie., from April 2009?

I want to re-invest not only profit but the with the principal amount as well from back-date which is April 13, 2009. Is it possible to re-invest the whole amount including accumulated profit? I would appreciate if any body can help to find the right answer. Thanks Tahir

is Possible the Prize bond can be sold abroad Overseas Pakistanis then in the shape the country’s no need to open their hands in front to any Overseas Pakistani can easily buy the prize ponds and the winning price can be authoritized to Pakistan representative. this is betterment for Pakistan’s economy

I want the following information, if some one provideme that, I would be really greatful. 1. I purchased Special Saving Certificates on 5th of August, 2008. I want to keep untill 3 years from date of purchase. How much I would get at the time of maturity. 2. I Purchased Same kind of certificates from Dubai one year ago, in the event of going back to Pakistan before the maturity date the issueing Bank will endorse to one of their branch of my choice ( as they said at the time of purchase). How long it would take to get registered at that branch and would it be smooth enough . Thamks.

I would like to know if DSC bonds were purchased under my name but signed by another person as the purchaser, how would one redeem them? We live in Canada and were residing there when they were purchased on our behalf since we could not sign for them. The person filled out the application and then signed it himself as the purchaser. Now I am concerned and wondering how I would redeem this? Do I have to visit Pakistan myself or the person who signed it to redeem with a power of attorney?

My uncle had my name as a nominee on Behbood Savings Cerificates. He has expired.Can I transfer these certificate on my name? Will I have to pay tax on it? The Behbood certificates are non taxable! Please reply in detail. Thanks

dear mushtaq you need to cash these certificates first from saving center … they will charge 10% withholding tax and they will give you money with the profit if these certificates are more then one year old. you required death certificate of you uncle with the certificate… if you required more information please let me know

Dear Wasif, I thank you for the reply but I need more detailed information. My uncle had 5 lacs of Behbood and 5 lacs of Pensioner Savings Bonds. As he has expired and I am a nominee on both of these Bonds. These bonds were purchased a year ago and my uncle died 3 months ago. I shall go to Pakistan next month to encash them.Please let me know if I would get interest on Behbood and Pensioner Sav. Bonds. Someone told them that I would get interest only uptil that date when he expired. A nominee gets no interest when a person expires. In this case only for 9 months and I won’t get interest for the remaining 3 months. Please reply in detail. Thanks Mushtaq

i would like to check if i wants to open an account in your bank ‘Islamic Bank’ how much profit i will have on it in one month and is there any zakat or tax that bank is going to cut. please advice. your prompt reply will be much appreciated.

A lot of queries are. As a conscientious citizen this senior citizen would wish to answer briefly due to his health reason.

The main theme is from a sister Aysha if Rs. 57,000 a month profit on Rs. 50 lakhs deposit is possible. She is referring to some advertisement appearing from so called Islamic bank in a newspaper. I have not read or seen this advertisement. However without even seeing that I wish Aysha and all others that in case they still have that advertisement then they must read that advertisement once more carefully. On that advertisement in a very “fine print” or in small letters with * sign there would be written “estimated, expected” etc etc. And this is the trick. Please be careful from following into that trap. First of all remember there is no “Islamic” banking anywhere in any part of the world. This is just as cruel joke as is Quran TV. Just to take advantage of the religious sentiments of the ordinary Muslim, these looters have invented different types of terminology like Islamic investment, Islamic shariah compliant etc. No bank world over honestly wish to work on Islamic principles.

Rs. 57,000 approximately a month profit is possible, yes, but not with any so called Islamic banking. It is only possible with National Savings Schemes which are government guaranteed and most safe in Pakistan. I will advise my those overseas Pakistanis who have cash funds to invest and are holding Pakistani passports, to keep their money in Pakistan in National Savings. This is very safe and also the best profit one can think of in today’s general banking system world over.

You can invest Rs. 30 lakhs in Behbood Certificates or Pensioners Scheme and you will fetch a net profit of Rs. 35,400 a month less a small withholding tax and zakat. In net you will pocket about Rs. 34,000 plus minus a month roughly. Rest you can invest in Regular Income or Special Savings.

In case Aysha or anyone wish to keep this money in Banks I would advise to refrain but only opt National Savings. For keeping a savings account, opt only on priority Habib Bank and secondly the National Bank of Pakistan. Though staff behaviour of NBP is appalling yet this bank is safe. Avoid so called foreign banks in Pakistan and those which have sprang up in Pakistan in every street. Sitting abroad deal directly with the National Savings and not through your relatives or any bank branches abroad.

One can contact me at adiseme@live.com but due to my health response would be a bit late but I would feel it my honour if I could help anyone.

Aysha, your enquiry how much you will get monthly against one lakh. Rates are different eg in Behbood you will get Rs. 1180 a month, in Regular Rs. 1000 a month etc and so on.

Sorry to bother. i have one more question that i saw on the news paper that you have a scheme that if we will put 25 lakhs in Islamic bank we will have 27,000 rupee comission in one month. Is it true???? and where are the branches on Islamic bank and Alfalah Banks in lahore if you can provide us the maps or address. it will be much appreciated. Thanks & Regards. Aysha

Hi, is it possible that can i have the account opening forms of Islamic bank and Alfalah bank through you if you have it??? what’s the requirement to open an account starting how much money i should have while i am opening an account??? as i am living abroad and i want to make sure when i will go back Pakistan i should have all the information and documents with me. Thanks.

I have special savings certificate which I purchased in January’2009. So far I have not claimed any profit. I have 2 questions which are given below: 1.0 Will I get profit on the amount of profit which was due which I did not claim yet. 2.0 Do I need to take the original certificates along with the original cheque (profit) book or only the original cheque (profit) is good enough to claim the profit only.

Good Morning SIR/MAdAM I hope you will be fine with almighty. Actually,i need some information about national saving intrest rates.I have invested some of money behafe of my father.my father just recently retired and he is over 60,i kept 6 million (pensioner scheme) which i m taking 15% on this money,but i need to know if is it possible i can keep another 6 million on same scheme same intrest 15% behafe of my father OR alternative way , i want to invest 10 million more but intrest rate should be minimum 14%.I hope u will reply me as soon as possible ,i woulldT be wait much longer.thanks so much your precious time.

I am wanting some advice ***this may be very important to forgeign investors in Pakistan***

My father purchased Defence Savings Certificates from the Post Office in Pakistan. He died before the 10 year maturity of the certificates. My father nominated me as the ‘Nominee’ on the certificates for value ‘share 100%’ when he purchased them. I went to the Post Office and they encashed the certificates into my bank account including all profit.

Now, there is a legal challenge by my family as to what a ‘Nominee’ is. The advocate is advising them that the Nominee is ‘merely a hand to receive the money’. Is this correct? If it is correct, then the system for nominee is extremely flawed for those poeple who want to ensure they are leaving money to certain persons only. This has a big impact on foreign investors.

Please can somebody advise, in the terms of Banking and Post Office Laws – what the right of the Nominee is?

The word “Nominee” is only for getting, receiving and encashing the proceeds lying in a Bank account or insurance money. It is an official instruction by the late to the bank or insurane that my money/things are handed over to this and this named person in case of my death. This is done just for smooth sailing and closing of the account which otherwise is tiresome method.

Now when a person nominates for example in case of a bank account or investment in national savings say the eldest son or young daughter mostly the person nominating so do it because he finds that in case of death this eldest son or young daughter can well manage due to his/her education with the bank. Secondly such a person trusts that his eldest son/youngest daughter are most trutable and honest hence he nominates that in case of death he/she will receive the money and would divide to all other brothers and sister in a justifiable manner. So it is all to do with the conscious of the “Nominee” in assuming his father nominated him because in case of death he wanted to give all money to him or he wanted that after getting the money legal sharia shares are given to all.

According to Sharia all heirs have the prescribed rights on left over money. But if the nominee in his own honesty feels the father wanted him to have all that money it is upto him.

There is a lot of difference between the “Will” and “Nominee”. If you have taken the money from Natioal Savings and desposited in your own, the there are two options for you. Withdraw that money from that account and keep it elsewhere in account of your wife, son etc provided you think you father left that only and only for you and that other relatives are struggling to get it through legal process claiming also heirs..

i have taken retirement after 30yrs living in dubai wants to invest in savings scheme age above 50 can i get same rate as retire person getting after retirement in pakistan and what documents u need for pls reply…..thanks

Dear Ahmed, you can not nvest in National Savings Behbood Scheme as your age is 50. Likewise you can not invest in Pensioners scheme as you are not a government retired employee. Each government raises a slogan of welfare of overseas Pakistanis and their rehabiliation on their return eg. recently Shahbaz Sharif and MQM’s Farooq Sattar raised the same slogans but just to remain as slogans These good things they only repeat before TV cameras and then forget. More than 10 years I struggled hard spending a lot money, time and energy that if the government had any real remotest care for the Overseas Pakistanis then those who return back to Pakistan after serving long say 20 years must be treated as “retired” and allowed investment in Behbood Certificates but I never got any response including from the so called Overseas Pakistanis Foundation which has only been established to provide jobs to mostly dear one who in return could loot this organisation.

mr Javed ..my father had died 10 years ago when I was not miture enough to follow up for his bank account.i am not sure he had deposited his money in national saving bank or post office but my family members told me he had purchased some bonds from the bank or post office where deposited his money.when he died no body had found those bonds and can not trace his account record. Please give me some guide line that how can I trace that money and how I can withdraw it.what will be the procedure and requirements…….as we don’t have any evidence or record for his bonds.

I purchased DSC in 1997 that were already matured. I live abroad. Do I need to come to mature the same. What if I want to reinvest the same in the same DSCs. Is that automatic or I need to go to Pakistan to apply for the re-investment. Please reply.

Dear Hussain Profit on your certificates will continue even after maturity, you do not have to worry about that. If you purchased you certificates from Pakistan then you will be paid in Pak rupee, you can en-cash when you visit Pakistan but If you paid from outside Pakistan in foreign currency, then you can get profit in foreign currency as well.

Hassan, Raheem Bhai’s advice is very correct. I only would add to it when you encash get the proceeds in Pak Rupees and never get it converted in foreign currency. Sitting abroad you can also get those certificates encashed by asking the National Savings to pay you through a Pay Order in Pak Rs. which then you will send to your bank account in Pakistan for credit. When i was living abroad I adopted this procedure.

I just want to ask that my national sav Cert got mature 3 years ago, in 2007 i was told by a friend that for 1 lakh u’ll get 11% so please let me kw abt it if its sure…m out of pak so not sure abt anything plz help me out with it..:)) thnaking you!

You have just mentioned “Certificates”. Which certificates it is not clear hence no proper answer can be given.

Your writing also is not clear. What I could understand is that you are abroad and your “Certificates?” are lying matured since 2007. Take my advise when you go to Pakistan and get those encashed be sure to take profit upto 2010 or till the period you encash those. Do not get yourself be fooled by someone that profit will be upto 2007. One thing you and others in your circumstances must always remember that you first calculate the total profit accrued or get it calculated before going to ” place ” for encashment and never never ever sign on back of the Certificate as “acknowledgement” of having received so and so unless you have got it confirmed what amount you will get and do not sign that portion blank.

Mohammad Sabir, one other thing, sitting abroad you can get those certificates encashed by asking payment through a Pay Order/Bank Draft for credit into any bank account in Pakistan. Never ask for repatriation in foreign currency which would be a big loss to you.

Folks, Can anyone tell me whether buying National Saving Certificates is Halaal? and is that complying with the Shariat Rules. I am working overseas and find it quite attractive but having 0 knowledge hesitant to proceed further. Thanks for the help !

Q1. Will this rate of 14.64% on Behbood Certificate be increased on all those certificates which have been acquired less then 14.64%? If not Q2. What would be the cut off rate if anybody withdraws his/her invested amount?

14.64 profit rate will be applicable on new investments only Q2: I do not have definite answer at the moment, will try to get some info on this question. Withholding tax FAQ Q.13 On which schemes, the withholding tax is applicable and under which law?

Ans: With the exception of BSC and PBA, profit on all NSS is subject to deduction of withholding tax @ 10 in case the investment exceeds Rs.150,000/- under the Income Tax Law for the time being in force except Regular Income Certificate wherein no such exemption is available.

Q.14 If two persons are holding joint investment, what is the limit of tax exemption what will be the investment limit either Rs.150, 000/- or Rs.300,000/-?

Ans: For the purpose of withholding tax deduction, presently Rs.150,000/- shall be deemed to be the limit. As soon as this limit is exceeded the profit shall become liable to withholding tax beyond which tax shall apply irrespective of whether the investment is in single or joint names.

Q.15 Is there any tax applicable on the prizes won on Prize Bonds, if so, what is the ratio?

Ans: The tax at the rate of 10% of the prize is deducted at source at the time of payment of prize money in accordance with the Income Tax Ordinance, 2001 as amended from time to time.

Q.16 I am a non-resident Pakistani and want to make some investment in National Savings Schemes (NSS), whether, the profit earned will be exempt from tax or not?

Ans: The investment received through the branches of Habib Bank Ltd. and United Bank Ltd. operating abroad and profit paid abroad is exempt from deduction of withholding tax.

Ans: Zakat is collected from investment made in Defence Savings Certificates, Special Savings Certificates (Regd), Savings Account and Special Savings Account. In case of Defence Savings Certificates, the Zakat is collected @ 2.50% on the accumulated value of the certificate(s) (i.e. principal + profit) as on the Zakat valuation date preceding the date of encashment. Whereas, in case of Special Savings Certificates (Regd), Savings Account and Special Savings Account the Zakat is collected @ 2.50% of the principal of that particular maturity.

Q.18 Is there any time constraint for submitting a Zakat Declaration seeking exemption from collection of Zakat?

Ans: Yes, there is definitely a time limit. The said declaration can easily be submitted at the time of investment or after that, but it should be furnished before 1st Shabban so as to make it effective for the coming Ramadan. Any declaration submitted after the 1st Shabban will be applicable for the next year and not for the current Islamic calendar year.

Q.19 I am a non-resident Pakistani and want to make some investment in National Savings Schemes (NSS), whether, the said investment will be exempt from Zakat or not?

Ans: Any assets acquired against payment in foreign currency or maintained in foreign currency are to be treated as exempt from compulsory collection of Zakat. An account, which is opened with foreign currency and out of which an account can be withdrawn in foreign currency or local currency does not change the nature of the account.

Q.20 Is there any Zakat collection in case of reinvestment of existing Certificates?

This is a good blog for the information and benefit of Pakistanis living abroad. There are Branches of Pakistani banks in various countries, but there is no branch of Directorate of National Savings. I think there should be branches of Directorate of National Savings side by side National Bank Branches abroad. The modalities on all aspects can be worked out. Govt will be able to fetch more investment in National schemes. Moreover citizens who have investment with the Dte and cannot frequently visit homeland will be able to get their profits (no matter may be in Rupees) and attend to all matters relating to their investment in DNS abroad. K A Khan TX USA

Can you please explain about SSC, is there any other taxes are applicable within three years period other than Zakat. Also if profit can not be taken six monthly then profit will also be applicable on that amount.

We should invest money in Meezan bank. because of highly pure profit than other banks. Mufti taqi usmani is world renowned scholors. his fatwa already there. as a normal muslim i am not worried about it. Last time i invested 21 lacs rupees. if other bank would give more than meezan bank i will not accept it.we have to choose halal profit.

Salam Naureen, In case UR Father’s death.U have to produce death certificate + UR national ID Card + the certificate, they Must cash the cetificate Provided UR Father has nominated U as Beneficery……………….In case UR not Beneficiery than U have to get sucession Certificate from the Court. Hope that will help U. I was in a similar situation ,in openion this is the correct procedure.

Need fast improvement in procedures of transactions of National Savings (Use of computers is important) for that you need new blood to introduce fastly in the Organisation in order to use it system correctly and quickly.Old staff is not capable to use IT instuments even they are well educated. If system is computerised and staff well trained to use the system then Saving Centres may increase atleast 25% business in this year.Above statement is based on my experience of Banking and commercial companies experience. If National Savings wish to discuss futher may contact 0308-2446993 Thanks & Regards, Athar Ali,Syed

National Savings has the best IT / Management personnel to run their business. It is funds, allocation of funds and time to set up systems get approvals etc that takes time. They dont require advise from some microblogger for this.

AOA, I m living in KSA and i m unable to open website of national saving center for the last one month i.ehttp://www.savings.gov.pk can anybody check with him/her that either it is opening or not. Thx Ahmad

ADNAN never cause any loss to any one, never misguide anyone. If you are not sure you have proper knowledge about anything never try to put your in put as your defective knowledge could cause damage to anyone.

Living abroad one can get Defence Certificates or any other similar items including opening of Bank account etc and even withdraw profits sitting abroad. For twenty long years I got my profits withdrawn sitting abroad

Please tell me that I was purchased the DSC in 1998 after completion of 10 years National Saving Office Pakistan Secretariat, Saddar, Karachi give me short payment as printed on back side of the certificate. they told me the rates of profit revised by government. But my question the government revised/reduced the rates of profit in the year 2006 – 2007 – 2008 and etc. but I purchased the DSC in the year 1998. So why they paid me short payment. Kindly expedite me as soon as possible. as per under the Rule.

Wasim, you purchased in 1998. The 10 years term expired in 2008. It does not matter what was rates mentioned on back of your DSCs. The rates would apply which from time to time the Government under a notification announced. As a matter of principle you are quite right that those words should be honoured but you know the conditions in our beloved home.

I will advise you and would advise all Overseas Pakistanis that they keep a print out of comparison of rates which the Administrator of this website has painfully prepared above showing rates applicable in different years and in different times. This is a very very useful chart and every one who has invested should keep a copy of it as such information in pieces tabulated at one place is very difficult to find.

Wasim need to make her own calculation from 1998 to 2008 based on the above tabulated Chart and not as given in the back of DSCs and see if he got payment according to that calculated figures.

He is also entitled for the full profit for the years 2009 and 2010 (2011).

My advise to every one holding DSCs and instruments like this is that before going to National Savings or Post Offices and signing on back as pre-receipted receipts should always be avoid and before going to surrender and en-cash double calculations at home must be done.

ON MAHANA AMDAN ACCOUNT 10 PERCENT WITHHOLDING TAX CONDITION MUST BE REMOVED. AT THE TIME OF OPENING THIS SCHEME TAX WAS NOT APPLICABLE. 10 PERCENT WITHHOLDING TAX IS TO MUCH. ONE CAN NOT AFFORD IT. ALL THE MIDDLE AND LOWER CLASS PEOPLE ARE KEEPING SMALL SAVING IN NATIONAL SAVING CENTERS. SUCH TYPE OF HUGE PERCENTAGE IS TO MUCH. TO ENCOURAGE THE SMALL SAVING TAX CONDITION SHOULD BE VIVAED. WHEN THE WITHDRAWAL SLIP WILL TAKE THE PLACE AS CHEQUE WE CAN TRANSFER MONEY FROM PLACE TO PLACE. DUE TO THIS ACTION RUSH AT THE COUNTER WILL ALSO BE REDUCED. ATM MACHINE INSTALLATION IS ALSO MUST TO OVERCOME THE RUSH.

Withholding tax is a very small amount on profits only. It has no stand that while opening of Mahana Amadni Account this tax was not there. All over the any new levy can enforced any time.

National Savings is not a member of Clearing House hence its withdrawal slips can not be transacted as bank cheques. However if amounts are big you can deposit a withdrawal slip in your account, some banks do transcit these but services charges are high.

Not that much worry. First of all immediately without a minute delay write a letter t your National Savings Centre informing them “simply” that you have lost your Certificates (do not say in robbery) and that the Centre should immediate stop any payment, profits, encashment, claim or any other transaction over those with immediate effect. Send this letter to the National Savngs under Registered Mail (a legal way) and as a precaution also send one separately through local TCS. You must have either photo copies of these Certificates or atleast having noted Certificates Serial Nos. Registration No and the date of Registration/Purchase. Mention all these 3 things in your letter.

The above is the most important step to protest your interest. Write only simply very short as I stated above. Do not write long history.

Having done that you will have to prepare Indemnity Bonds text of which can be taken from the National Nationals but “after” you having written the above letter. On the basis of this Indemnity Bond the National Savings on your application will issue you duplicate. It will take your time but you should not worry that much as you have lost only certificates not the money “PROVIDED???”

Since three decades that is why I always advise never the open an account (certificate/investment) on one single signature for which even in 1990 I got the banking procedure/system in Pakistan changed through a human rights petitioin and (ii) never purchase National Savings Certificates as these can get lost, destroyed, get fire in home or floods and instead open “Account” with National Savings. Write me at adviseme@live.com if you find any difficulty or if someone creates unnecessary problem. This senior citizen though 90% blind still is active in such matters to help others.

Ejaz, you purchased RSC or onions. Simply you mean to say that you purchased a plot for Rs. 300,000 but you did not know what is the address of the plot and in which city it is. I am sure you must have a lot lot money spending without even a remotest care or consideration. Lucky man

I was purchased the DSC in 2002 as amount of 2.2 millions Pak Rs. Kindly would you like to tell me the exact net amount i will get after completion of 10 years in 2012 ,after detecting of with holding tax please.

For those unable to open any webiste should use the VPN. We have same problem in China but using VPN can resolve this issue. I am using Astrilldotcom it is quite good and one can open all the blocked websites

PENSIONERS BENEFIT ACCOUNT Keeping in view the hardships faced by the pensioners, this ten years’ maturity scheme was launched by the Government on 19th January, 2003. The deposits are maintained in the form of accounts and the profit is paid on monthly basis reckoned from the date of opening of the account. Who Can Invest . The pensioners of Federal Government, Provincial Governments, Government of Azad Jammu & Kashmir, Armed Forces, Semi Government and Autonomous bodies are allowed to invest. How To Open an Account. These accounts can only be opened at the National Savings Centre (NSCs) by filling in a prescribed form called DA-1, which is available at the offices of issue free of cost. A copy of the Computerized National Identity Card (CNIC) and the copy of Pension Payment Order may be attached with the application form. Mode of Deposit.

The account can be opened by depositing cash at the issuing office or by presenting a cheque. The account shall immediately be opened on receipt of cash. However, in case of deposit through cheque the account shall be opened with effect from the date of realization of the cheque after receipt of the clearance advice.

What Is The Investment Limit.

The minimum investment limit is Rs.10,000/-, whereas, the maximum limit is Rs.3,000,000/-. If an investor has already opened an account, he is eligible to invest only two subsequent deposits in that account. What About Withdrawal. The deposits can be withdrawn any time after date of deposit subject to deduction of service charges at the following rates: if withdrawn before completion of one year from the date of deposit. @ 1.00% of the face value if withdrawn after one year but before completion of 02 years from the date of deposit. @ 0.75% of the face value if withdrawn after two years but before completion of 03 years from the date of deposit. @ 0.50% of the face value if withdrawn after three years but before completion of 04 years from the date of deposit. @ 0.25% of the face value Note: A receipt of the service charges so deducted, duly signed by the officer incharge and the cashier, shall be issued to the investor.

What Will I Get As Profit. At the prevailing rates monthly profit of Rs.1280/- is paid on investment of each Rs.100,000/-. This way the profit rate works to 15.36% p.a. Automatic reinvestment of profit facility to earn further profit at the scheme’s rate is not admissible in this scheme. Tax & Zakat Status. The withholding tax is not collected on the profit earned on the deposits made in this scheme. The investment made in the scheme is also exempt from Zakat.

If some one wants to invest money and wants to get reasonable profit then contact me I will personally provide profit of Rs.3000/= per month at every Rs.100000/= invested. I guarantee of profit. Plz dnt hesitate no fraud. No tax deduction. no zakat deduction. Our character and reputation is open who knows us. Inshallah u people admit it Email:jamiljahangiri@gmail.com

Moazzam best option for your go for “Regular Income Scheme” with National Savings. Better register with GPO Islamabad to avoid one full day wasting in National Savings Centre. It will give you monthly income.

I would like to have islamic banking account. First of all I would like to be sure tht my income is 100% according to Shariah. also please let me know the possibility of getting monthly profit of deposit of 10 Million Rs. what are the best rates I can get it. Please reply to my e-mail.

Hello I have mote than one DSC bond with the NSC in Kallar Syedan. I live in uk and cannot travel to Pakistan due to illness and seriously need to withdraw my funds. I have contacted the branch and they tell me there is no way to do it but in person I have all the certificate numbers and my nadra card number and British passport and driving licence. Please advise me on hat to do as I’m not familiar with how this works as my father bought them for me in my name and sadly passed away 2 yrs ago.

Is it possible to transfer/wire the funds into my uk bank account (which is obviously under my name) or should I ask the branch to transfer the funds into another branch which is much larger and actually had a fax machine so I can fax my proof of ID over? Please help.

I sometime wonder why people do not read fully and start putting questions answers to which fully and exhaustively already this very fine website gives. Most of the information almost to every possible senario I and the learned webmaster/administrator have already painfully given on these pages.

You can get payment abroad in US$ provided your payment was in foreign exchange/remitted from abroad. Alternatively sitting in UK you can get payment through a Pay Order in Pak Rupees for credit into your account in Pakistan.

Your father purchased the certificates “for you and on your behalf” as you say, it is a tipical situation. Here the question coes of age and signature. Unless true clear position is not known it is difficult to give answer.

No one can wire you or do this and that but only a Pay Order encashable in Pakistan – for credit into your london account in case investment was in foreign exchange.

Under all circumstances, whatsoever, you can get payment sitting in London.

i have a question i boght certificates from lahore and its maturity date is MARCH 2012.NOW MY QUESTION IS CAN I reinvest same certificates without travelling to Pakistan and what are the procedure ? or if i don’t go in march and go in september will i get profit of these 6 months after maturity date is over ?

Yes, you do not need to go Pakistan. Just write a simple two line letter to your National Savings Centre giving your registration number asking them to re-invest the amount from the date of its existing expirty. Write through registered mail and keep preserved the postal receipt. That is all.

MR JAVED HOW ARE YOU , BROTHER BEFORE FEW YEARS BACK I OPENED ONE ACCOUNT IN THE OF MY FATHER AFTER FEW YEARS I CLOSED MY ACCOUNT AND TAKE ALL MY MONEY AND PUT INTO ISLAMIC BANK BECAUSE SOMEBODY TOLD ME THAT THE NATIONAL SAVING SCHEME IS BASE ON SUDD . SO BROTHER CAN U TELL ME IF I WANT TO OPEN AGAIN IN SAVING SCHEME I THINK U UNDERSTAND WHAT I MEAN BECAUSE ISLAMIC BANK NOT GIVING ME MORE PROFIET LIKE NATIONAL SAVING SCHEMES GIVING TO PEOPLE , BROTHER WAITING FOR OUR REPLY

Asad, sorry for late response. Due to my health I hardly come to such sites once or twice a month. You can contact me at email adviseme@live.com which usually once a week I almost attend.

Yes you can again any time go back to National Savings. No bar. National Savings, so far, are the best and safe schemes. What happens tomorrow seeing what is happening around us nothing can be said.

As far as Islamic banking is concerned, again due to my health, I can not give you proper reply. In simple words this Islamic banking (as existings today in Pakistan or in any arab country) is just an addiction and to fool you and me as todays our rulers fool us in the name of democracy, every one equal in the eyes of law, benazir income scheme, merit etc. They are all fooling you and people like you. Using word “islamic” with a banking system is one of the big tool to ppick pocket the people like you. Remember it the day the first ever real Islamic bank true to the concept of Sharia is established any where in the world, the whole world not merely Muslims, even christians, Hindus, Jews will rush towards that Bank.

one of my relative keep 30 lacs in behbood certificate (in behbood limit only 30 lacs) the keep 7 lacs more by mistake of my relative & natioanl saving bank they keep also this 7 lacs in behobood. Now 7 monhts finish. so now what will be happened my relative will receive this 7 months profit or not bcuz he want to keeps this 7 lacs on another schme. so now what will be happen please reply me.

I purchase DSC Rs 100000- and not collect any profit and certificate become mature, there is compound interest on this profit which i not collect. Can any person tell me how to calculate compound interest,

Please some one ell me regarding special saving certificates ie if i deposit 10,00,000 Rs in SSC how much profit i can get monthly and can i use the profit amount abroad by ATM/Debit card and this amount is called profit or interest. pls reply me as soon as posible

National Savings is not a member of Clearing House. As such these withdrawal slips “normally” are not dealt in Clearing House. However there had been practice in the past that some bank branches did accept these slips. You just in the normal way deposit this slip Crossed Payee Account with your Branch.

The worst investment if one (people like me from the middle and lower middle class) do is that is “life insurance”. Always avoid the big alluring words, attractive pictures of benefits from life insurance. For we the middle class it is much better to put your that money into sewerage or in a river you will not regret at much what you will feel yourself sorry after 20-30 years if you indulge life insurance.

Salaam, I invested in the national defense certificate scheme for 10 years and at the time put it in mine and my daughters name, who was under 18 at the time. I am now in Pakistan and would like to cash the certificates, but the bank manager is telling me that my daughter needs to be here also as she is now an adult. I have photocopies of her uk passport, overseas id card and an authorisation letter, but they are not willing to listen to anything I have to say. I have also asked my relative who is an mp in Jhelum which hasn’t helped either. I wanted to ask what else I could do since I am flying back to the UK on Sunday and would like to have this all sorted before then.

You have paid three installments so far. If now you have woken up from a deep foolish sleep, my sincere advise is forget the whole issue, forget to get refund. It is much much better. But this sincere practical advise does not fit in your ears then keep some tears to shed later.

Can any one told me that when the prophit rate decreased by the govt what is the effect on already invested money. either it will be changed accordingly or remain saim. Some one told me that if rates goes up it automaticaly increased but if it goes down prophit rate will remain saim only on new investment prophit will be less . Is it true.

You are confused and you will remain continuously confused because it is very simple for people like you to keep putting questions answers of which are already available but it just need to read the full text. The owner of this page Mr. Rahim has with much pains provided each and every information on this site which the “lazy and confused” people of course can not take benefits of.

Dear Mr.Javed, As I can easily see you as a knowledgable person,and I agree that banking as per Islamic rule is not prevailant, just to clear some confusions I need your help regarding following points 1. Where does the markaz kaumi bachat invest the money provided by the people. 2. Can investment in NDC be categorised as Modaraba arrangement if yes please explain. 3. Has there been any ruling provided by Federal Sharia court, Islami nazriati council or by any other authentic source on NDC as sharia compliant or not? I would greatly appreiciate response from you or someone who wants to answer not bullshit

Your questions again ride towards the same confusion vested interested have created in the name of “Islam”. Your query about Fatwa, Modaraba are int he same line. The true naked facts are there is no Islamic banking anywhere in the world. The day when a true Islamic bank, working in true spirit of Holy Quran and Sunnah opened anywhere in the world, the individual investors of any faith, religion or country will run to that bank to have “fair” share of income on their deposits.

The private houses, building surrounding Holy Qaba are requisitioned from their owners, of course of high price, in the name of providing more space to visiting Hajis and facilitate them ease. What is practical these emptied spaces are then used for building 8-10 star luxury hotels owned by elite where not a person like me or you can even think of entering into the reception let alone stay an hour but all this is done in the name of Islam.

Face the facts. Completely shun so called Islamic banks. Go to normal banks. If you are not satisfied with the return they give you, take it and simply pass on to families facing hunger and miseries. But do not let your hard earn Rizq-e-Hilal in the hands of some called Islamic banking just to fool you and make their personal coffers haviers.

THanks Javed,yeah I think the same moreover the modern banking system works differently then the old riba collectors, the only distinction ulema draw is the profit being guaranteed by the bank, but who will leave money with the bank if it doesnot guarantee profit on it.

Shahid, it is wrong, as our religious leaders convince you, that the Bank give you guarantee. No bank anywhere in the world give you any guarantee. First thing remember in simple but practical terms both you and the bank (may be Habib Bank or so called Islamic Bank Limited) are partner. The bank is active partner and you are sleeping partner. The bank has time and professional experience and you have money. So both of you enter into an agreement whereby Bank agrees it will work with your money for benefit of both and should share with you the proportionate income. Now whether you are an account with Habib Bank or with so called an Islamic Bank, it is term of your agreement that in case the bank goes into loss proportionately you will also bear the loss. If the bank become bankrupt, as many banks have become in the past, then your as well as bank’s own share goes into the dust. You understand both you and your bank stand equally profit and risk.

No bank today gives you “a fixed” percentage of profit. Since 1984 (or so perhaps) our banks are working on Profit & Loss Basis. It was created to keep the Islamic system in view though it is not truly Islamic. Since then no bank today has fixed rate of yearly profit. You will find almost invariably “Estimated” 6% Estimate 7% etc. Which clearly should satisfy you that your term is both profit and loss which covers one aspect of your Islamic fears and with the word “Estimated” it covers the second part that the rate of profit is not fixed but depends on what the bank after a year earns in its business. So both should be to your satisfaction.

In the nation savings the word “Government Guaranteed” investment today has no meaning and this guarantee practically does not stands. Today National Savings take your investment on this rate and in next six month or a year it changes both upward and downward. Read the above comparison which Mr. Rahim has very painfully prepared and keeps updated. This comparison shows you rate of profit today is not fixed. Many of these religious scholars have their private businesses and they have bank accounts with Standard Chartered or Habib Bank.

Rahim is very right defence savings certificates are long term investment and the best one but it is also a fact long term investment not only in Pakistan but anywhere in the world today is not a wise step.

How to get profit on Savings Certificates from abroad on the basis of power of attorney i) An investor can get profit of his certificates / accounts on the basis of Power of Attorney by authorizing any person in Pakistan giving his /her full particulars, to collect the profit in his name subject to the entire satisfaction of the Officer Incharge concerned. ii) The Power of Attorney so issued shall contain full particulars of the investment i.e. the amount, Registration No. and date of issue of the certificates, name of original holder and the concerned National Savings Centre and shall be verified by the 1st and 2nd Secretary of Pakistan Embassy / Consulate General in the country of his / her residence.

Dear Rahim, Power of Attorney is a long and cumbersome procedure. Why to adopt this way which in our Urdu language is called “via Bathinda”.

I and my wife have two monthly income schemes. Every six months or a year I get the due profit from NSC through a Bank Cheque issued in my name, forwarded to me abroad and then I send it to my Pakistan Bank Account. Simple as it is.

The fact is most of the above questions are from people who does not have the minimum ability to read properly. They just have money and want information and depend on “you”. 90% question on this web are waste of time viz answers to those are already available on the web but they do not want to take pain to ready properly and understand.

I am always appreciative of your painful efforts in keeping this web. It is my advice that you ignore these stupid questions and answer only those queries answers to which are not available on these pages or which have not already been explained and thus saved time you give to updating this site which since long is awaiting your attention as you had been paying some years back.

I purchased Defense Saving Certificates 3 years ago, can you please tell me whether or not i will get any profit if i withdraw the money after 3 years because i think i would not be able to leave the money for 10 whole years as the Rupee is depreciating every other day. It doesn’t explain very clearly how much profit i will receive after 3 years, also can you advise me what formula do they use to calculate the interest. I am in a dilema since the third year ends in May, please to reply back. Kind Regards Ali

Reading your comments about the answers are only on the website, i would like to say that it is not very clear, it just states that they will only pay profit if the money is not with drawn with in a year i would like to know will i get the 12.15% plus maturity or would a penalty be imposed? I would appreciate it if you do reply please. King Regards Ali

Withdrawal of profits on RIC is a big ordeal. Waiting time is always too long. There is no proper sitting arrangement for the customers. The limited seats are hardly enough for ladies only and are mostly full and many have to keep standing. Processing is very slow. Sometime it takes 3 to 4 hours to withdraw the profits. Suggestions: – profit may be automatically credited to the saving account on the due date so that account holder can draw it as and when he/she needs. – PNS may accept standing instructions to transfer the profit on due date to a specified bank account anywhere in Pakistan. – staff strength may be increased in Saving Centres. – number of Saving Centres may be increased. – more of automation should be introduced in record keeping of PNS. This will improve efficiency and accuracy. Regards

Salaam, I live in Saudi Arabia my certificates are miture more nearly 16 yrs. I invest my amount from Karachi. Can I get my amount from Islamabad or only can get from same branch. Second thing is how much monthly amount I will get on 1 Lakh. Thank you. Regards.

Just fill up Form, attach copy of your passport and CNIC and a Bank Draft for the amount. Send it under registered cover to the national savings center concerned. You don’t need to go. Unadvisable to deposit through any third person.

Living in London learn how the “original” Londoners live. Rather than wasting time purely in Pakistani style, just read attentively this whole chapter with much pains appreciablely prepared by the owner/webmaster of this forum, you will find each and every information you may need already having taken care of.

My father purchased DSC of 50000 at Feb 1997 with maturity of 10 years, however he did not encashed his amount on Feb 2007 till now. Kindly tell us the procedure, will the extra year amount will be reinvested at 2007 & profits can be reclaim? What are the procedure of encashment?

Apply for duplicates. You must have photocopies of your lost certificates or at least details. Fill up Idenmity Bond and submit with your application to your national savings ceter. You will be issued duplicate and it is not a big job.

Dear Sir , I am working in KSA and i wish to know some detail about SPECIAL SAVINGS ACCOUNT

1. If i make investment for example 03 year at the time of withdrawal of money the Zakat will be deducted for 01 year or for 03 years period. 2. Can I transfer money to this account from outside e.g from my saudi bank account and will this money be automatically invested. 3.Will it be possible for me to check my bank details from abroad or operate it by any mean. 4.In overall comparision which is the better option for saving between SPECIAL SAVINGS ACCOUNT and REGULAR INCOME CERTIFICATES. I believe the BEHBOOD SCHEME is only for a certain class of people. Regards .

From your Saudi bank much better not to directly “transfer” rather send what ever you want to invest through a Bank Draft or through a cheque from your Bank Account in Pakistan.

Though Regular Income Scheme is little better yet due to your circumstances that you are living in Saudi Arabia and it would be difficult for you to withdraw/collect you profit every month, hence it is much better to invest in Special Savings. Saudi Arabia is a “Pardes” for you hence better to opt for Special Savings Account rather than Certificate safety of which abroad could be risky. There is a very little marginal difference between Account and Certificate.

I wrote to RDNS Lahore and this is the reply I got. thank You national savings for such great service .

“The government has discontinued the facility of automatic re-investment w.e.f 15/11/2010. however, certificates you have purchased in 2008 and 2009 will be auto matically re-invested one time in 2013 and 2014.

Now you write a proper letter addressed to the Officer Incharge National Savings. Quote Registration No and date of your certificates and write the sentence “on the basis of my this letter as a reinvestment request please reinvest my above quoted Certificates for a further tenure from the date of its expiry”.

This will regularise and whenever you get those certificates encashed, you will get profit for the extended period. If you are in Pakistan then send this letter through TCS and if abroad through Registered Mail and remind the Centre if no response comes.

Sir, I was deposit the 20 Lak in my pension account with National saving scheme now that manager told to my family after every 3 month you must take profit . Sir this is new Rule. Before this if you want take profit after every 1 year .

Assalam-o-Alikum, I just want to know if I open an account in monthly saving scheme and monthly profit my father can get it c please can you tell me what is the procedure for this , I’m not in the country your help much appreciate . please send me an email. Thank you .

I opened Mahana Amdan Accounts for my children long ago. Now I want to close the accounts and want to transfer my money to my National Bank of Pakistan account . What is the procedure to close these accounts and get the accrued money for a family permanently settled in USA. We don’t have time to visit Pakistan shortly. I have Pakistan Origin Card from Nadra. The staff in the local branch in Pakistan doesn’t know clearly the procedure and wasted our one year! Hope to hear from you soon

Ghazanfar, you will make life’s biggest economical mistake if you close Mahana Amadni Account. MAA scheme for new accounts has long already been closed under advice from IMF. Those who already have this account till today have their accounts maintained. This is world’s best, repeat world’ best, investment scheme. So far God sake don’t kill the hen which is regularly giving you golden egg in order to get once what is gold inside the hen. Closing the account and transferring it sitting USA is not difficult. There are many victims whom National Savings staff misguided that scheme had been closed and got signature of the innocent people on back of Pass Books and closed their regular monthly income. Please don’t do. I can understand your problem that you are now going to Pakistan but your monthly profit is continuously accruing. Whenever you will go withdraw it.

(my wife and I too have some 20 years these two accounts in Islamabad where we have never visited but every year I get profit of those once a year sitting abroad. But you can’t do it because it involves courage and intent which seeing that you want to close the account I confidentally say you lack).

If your children have grown up to 18 years these accounts would have to be given under their independent signatures but for the time being let the schemes at it is. Don’t make mistake.

Thanks for your response. I realy appreciate your suggestions. But the problem is the staff at Saving Ctr. You have rightly indicated that they always misguide. I had approached them to get the accrued profit for investing in higher profit scheme in Pakistan. They are very discourteous and you realy have to decide whether or not you want to do business with them. They wasted my over a year period of time and finally told me they shall not give me the accrued profit and would be glad if I peruse to close these MAA accounts. They don’t know even what is the acceptable procedure to close the accounts. So now please let me know what is the best acceptable procedure to draw my accrued profit of 22 years for my accounts if I opt not to close the 5 accounts. I have sent them all the documents what ever they asked me including the attestation from Pakistan Embassy in USA . My family is too busy to think of a visit to Pakistan in near future.

Sorry I don’t believe you full reading your above lines. There is some confusion somewhere either in your understanding the reply of NS or you are wrongly misinterpreting.

Write a formal complaint addressed to Director General, National Savings, Islamabad explaining the date when you approached which Centre and quote MAA No(s) of your children’s accounts with their respective names, what answer was given to you. Draft this as you formally write to some one but send it to me at adviseme@live.com as a draft. I will modify it and return you for you then to send. Please keep it in mind you most probably will not get any response from the DG Office but that will be seen later on.

In no case, I as a father of a child, would pray and beg you not to sign any document for cancellation of your MAAs. Don’t get those accounts closed. Your children are luck they have world’s finest savings scheme. Don’t worry about profit, it is yours.

I await

PS: One thing remember I am old having lost one eye in operation. I am a non technical person having no knowledge of computer. hence I don’t attend emails or computers daily. Hence you wait for my response.

Being the most obedient servants the Mahana Amadni Account (MAA) scheme of the National Savings (NS) was closed some 12-15 years back obeying the dictates of international lenders. However, since those old time there still existed a bit self respect, it continued for those who already had their Accounts matured.

However, soon under some unwritten policy the staff of the NS Centers (NSC) started misguiding the account holders whenever they arrived to collect their accrued profits that the scheme was officially closed hence they now needed to close their accounts and get back their principal deposits. As is generally we the masses, even the educated ones, trusting it signed the account closure request Forms. During the last 12-15 years many such cases have come to my knowledge personally and through press. Only last month a Pakistani from USA approached me through expatriate Pakistanis Blog narrating his story sought my advice and one from Germany.

I had opened an account with the NSC Gulberg, Karachi in the name of my niece who then was a child. 3-4 years back my sister told me that the then Officer Incharge on her each visit insisted her to close the account as the scheme no more existed and forced her sign closure Form which she refused. Fearing he might tactfully get her signature she stopped visiting the Center until the Officer Incharge changed. Two weeks back my nice visited the Center to withdraw the accrued profit when the present Officer Incharge showing his frustration directed her to get the account closed.

Last year my wife approached NSC Gulshan-e-Iqball II for opening of a Savings Bank Account. The Officer Incharge misguided her that accounts opening was banned and only there Certificates were issued. He repeated this contention on phone with me which was duly recorded by the quality technical system. Later when I raised the issue with the Regional Directorate that I may be given a copy of the official notification, my wife was immediately handed over an Account Opening Form explaining that no one had ever come to open an account. The Savings Accounts system was introduced by the British late 1800s and the same still continues. Pakistan Post Office as an Agent of NS has millions of savings account and keep opening new ones but the principal whose scheme is this does not.

Imran Khan and Qadri today are struggling to topple the whole corrupt system and giving us day dreams and honey laden lollypops. Their agenda has, however, given a new ray of hope in this darkness that the nation yet does not need to be fully disappointed as there still exist amongst the rotten lot though few like that of DIG Karachi Shahid Hayat, lady DSP Khadija Islamabad, DIG Cheema etc who have not killed their conscious.

Mid 70s when administration was upright, Haji Ismail Dy. PMG Karachi forthwith terminated the service of Samanad Post Office Incharge seeing there was no booking any parcel during the last 8-10 months. The Incharge had replied that no one came to book any parcel. Haji Sahib a true public servant did not believe that from such a heavily populated area no one needed to book a parcel. Monthly returns are received in the Directorate from National Savings Centers showing totally monthly deposits, withdrawal, opening/closure of accounts, sale/surrender of certificates etc. But as per today’s trends, the Director National Savings never acting as righteous Haji Ismail did ever raised her eye brow to see how it was in the return for so long none from Karachi opened the Accounts.

Only an extreme insane cut the fruit bearing evergreen trees. Mahana Amadni Scheme was the best scheme ever launched. No one can accept that a sane will close his MAA matured scheme giving him monthly highest in the word profit unless he is misguided or fooled to do so. Though real good times don’t appear to be coming in the life of this senior citizen yet since some anchors like Dr. Shahid Masood etc are giving dreams that the present SC is soon going to be real active, I strongly await that time to come. If it ever arrived I will then knock at door of justice praying to pick at random hundred MAAs closed and a Bailiff or court appointed commissioner visits each of them, on my expense, to find from them if they closed their MAAs at their own or they were advised by the Centers to do so.

It is not a big issue one may cry. This staff is un-equipped. Hence if they close by 02.00 pm it must taken them dealing upto 03.00 03.30 dealing with those who have already entered into the center. A little margin should be afforded keeping the view at least the law and order situation of today.

SIR I M FROM WAH CANTT . I WOULD LIKE TO DRAW YOUR ATTENTION TOWARDS A PROBLEM IN NSC BRANCHES IN WAH CANT SPECIALLY IN ASLAM MARKET.THERE IS NO PROPER SEATING SYSTEM AND IS A BIG PROBLEM FOR LADIES AND OLD PEOPLE . TO WHOM SHALL WE COMPLAIN OR REQUEST FOR PROPER ARRANGMENTS. 2NDLY SOME OF THE STAFF PEOPLE ARE INSULTING OR SHOUTING AT THE OLD PEOPLE .HOW CAN WE BRING IT TO THE NOTICE OF HIGHER AUTHORITIES?

First to you write this matter to DG National Savings Islamabad either by Registered mail or through email. You will not get any response.

After a month On Line filed your complaint against DG National Savings that he did not give you any response which is an act of mal administration. Nothing would happen as far as seating arrangements are concerned. This is a matter of budgeting and logistics etc. However as far as non caring and non attention to senior citizens is concerned, the outcome will be YOU personally will get an attention in the Center.

i have request to the admininstration to be have some benifits for the overseas pakistanis as the have to save thier money for future use as the have to returned back home .they have serving the nation for many years but when they returned back no one care for them.there will be some scheme for the overseas pakistanis to motivate them to invest more in national savings.thanks

I am overseas pak, has anybody got any good recommendations for investment retur, reading the ‘short change’ comments It does not make me realy feel like investing in pakistani bank, are the banks free of corruption? aor are they like the islamabad airport?

Dear Investor! i am also an investor, and i Do know an institute which is fully registered from the Government of Pakistan in Our Mother Land Pakistan, who’s annual growth on your profit is more then 15 % without holding tax. so, if you are really interested in it, contact me through my email, arifawaiz@gmail.com. best of luck

The profit paid on RIC, Regular Income Certificate, is divided into different periods or it stays the same throughout till maturity? For example, when I purchase the certificate (let’s say in Nov, 2012) the rate was 12.60%. Rate was changed in Jan 2013, then again many times till now.

If I have not taken out any profit, my total profit after THREE years will be (100,000 * (12.6/100) * 3)

OR

will it be (100,00 * 12.6/100 * (3/12)) {for first year} + (100,00 * 11.76/100 * 3/12) {for the next three months} …. and so on.

I am glad that i invested in National Savings Scheme. The recent increase in profits on the Saving Certificates a welcome move. We must appreciate the government for taking into consideration the investment in these great Schemes. It will be beneficial for the investors and the government.

We must encourage the culture of Savings in Pkistan. We lag behind third world countries. Provision of such excellent Investment Scheme for the middle class economic groups is a wise step.

dear Brother! i am an investor, and i Do know a registered company in Our Mother Land Pakistan, who’s annual growth on your profit is more then 15 % without holding tax. so, if you are really interested in it, contact me through my email, arifawaiz@gmail.com.

My sister lives abroad and has purchased BS Certificates for our mother who receives her monthly amount, my question is after death how will my sister get all the money because only my sister’s name are on the paper no contact number or address or her NIC copy. does she needs to make a will or how does it work.

Reply from Javed Your information is wrong. In 1990 through a Public Interest Litigation I approached the Supreme Court of Pakistan pleading that a lot was lying unclaimed in banks of those who opened for many social reasons bank accounts secretly from their families and in case of sudden death the families do not know about such accounts. I did not say this just as a story but had seen many families suffering. The Honourable SC accepted my plea and banks were asked to declare through press such accounts. The Banks did it and one can find lists of such accounts on net today. At the same time through another petition I suggested amendment in the account opening Forms to safeguard from becoming such accounts “dead with the death of account holder”. My this petition was also accepted and my drafted and suggested amendment was incorporated by all banks, post offices and national savings.

Mrs. Peter your information is either wrong or confused. My experience is story is something else.

Your story is your “sister purchased” and her mother was receiving monthly profit. Your sister must had purchased but may be in the name of her mother hence mother was receiving profit. Or your sister must had opened account jointly with the mother that is why mother was receiving profit. It is not in “normal” case possible that certificates were in the name of your sister and mother was receiving profit from national savings center.

Secondly, you are totally wrong that on the Account Opening or Purchase of BSCs Form there is only name of your sister. It is not possible. Without both foreign and local Pakistan address no account is opened.

Thirdly there is definitely, repeated invariably, a clause in the Form wherein the purchaser nominates a person as his/heir. And your sister had done it.

Your story is confused. You say “after the death”. You did not, perhaps for obvious reasons, mention whose death? Mother’s or purchaser (your sister).

There are loopholes in your story.

A legal heir or a nominated nominee whatever the case may be very easily through a very simple process gets back the invested money.

the interest on the Saving certificates are calculated at the rate when the account was opened and after that if the interest goes up then your interest goes up but if it come down, your interest stays the same when it was raised. i.e. Account opened on interest rate 10% pa. and the interest went up to 12% and the comes down to 10% your interests shall stay at 12%. You can check on website of National Savings.

You are wrong. If rate when you invested was 10% say in Behbood or similar, it will remain the same if rates subsequently gets down or gets up. If you want to get higher announced rates, first cancel your existing investment and then re-invest fresh in new higher rate.

As per rule it is to pay you for 10 years, same rate which was applicable on the first day of your purchase of certificate. I am sure you are confused as such I advise you to check again and re-check. If you are then right that lower ate is being paid, then raise the issue with Federal Ombudsman, your problem would be solved.